(Kitco News) - Gold prices are firmer in midday U.S. trading Monday and hit another record high of $2,659.80, basis December Comex futures. Silver prices are weaker on profit taking after recent good gains. Safe-haven demand and bullish technical charts are fueling the gold market’s ascent. The same goes for silver but to a lesser degree. December gold was last up $8.80 at $2,655.30 and December silver was down $0.35 at $31.15.
In overnight/weekend news, Israel continued its stepped-up military action in Lebanon, while Hezbollah ramped up its missile attacks on Israel. This situation is bound to intensify before it ever de-escalates. The keen uncertainty of this matter has helped push gold prices to record highs recently.
China Monday slightly lowered one of its key interest rates, the 14-day reverse repo, by 10 basis points. This continues a move by Chinese monetary authorities to ease money policy to stimulate the listing China economy.
The key outside markets today see the U.S. dollar index slightly firmer. Nymex crude oil prices are weaker and trading around $70.55 a barrel. The benchmark 10-year U.S. Treasury note yield is on the decline and is presently fetching around 3.75%.
Technically, December gold bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $2,750.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,500.00. First resistance is seen at today’s contract high of $2,659.80 and then at $2,675.00. First support is seen at today’s low of $2,638.60 and then at $2,625.00. Wyckoff's Market Rating: 9.5.
December silver futures bulls have the overall near-term technical advantage. Prices are in a six-week-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the July high of $32.46. The next downside price objective for the bears is closing prices below solid support at $29.00. First resistance is seen at last week’s high of $31.755 and then at $32.00. Next support is seen at the overnight low of $30.67 and then at $30.00. Wyckoff's Market Rating: 6.5.
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